1. You are given with the regression result that shows theregression model with k variables. Answer the following parts:
a) How do you tell that a certain variable is influential?
b) Suppose the theoretical issue said there exist a linearconstraint, how do you figure out the constraint holds?
c) Suppose you have two sets of explanatory variables; how didyou consider which set is the better one?
d) What’s the meaning of R-squared? Should we always look forthe model that has the high R-squared?
e) Suppose the explanatory variables are subject to lineardependence among themselves, what is the correct procedure toestimate the coefficients?
